Expert talks about low-risk financial instruments

With the unstable economic situation and high volatility on financial markets, many investors are looking for ways to preserve their savings with minimal risk. Low-risk financial instruments are becoming more and more popular, especially among those who prefer stability and confidence in the safety of capital, Capital Lab partner Evgeny Shatov told Izvestia on February 17.

According to the expert, such financial instruments are assets that are practically not subject to the risk of capital loss, i.e. guarantee the investor its return at the end of the investment term. They provide a stable, although not always high income.

"In the current market conditions in the period when the key rate of the Central Bank of the Russian Federation is at a high level (21%), the yield of risk-free instruments is so high that it has led to an outflow of funds from shares and an overflow exactly into risk-free assets. The main purpose of such instruments is to protect savings from inflation and minimize the risk of loss of funds," he explained.

According to him, bonds issued by the government are considered one of the most reliable instruments. They provide fixed income and have a low risk of default, especially when it comes to countries with stable economies. For example, federal loan bonds (OFZ) in Russia.

A feasible deposit: the average size of Russians' deposits has grown to 500 thousand rubles.

It increased by almost 22% in the past year

In addition, bank deposits, especially in large and systemically important banks, are also low-risk instruments. They are protected by the deposit insurance system, which makes them safe for investors. Savings certificates also offer a fixed interest rate and can be issued by banks. They are less liquid than deposits but are also considered safe.

"The advantages of risk-free instruments include their reliability, they involve minimal risk of capital loss, and predictability, as they bring fixed income in designated conditions," Shatov said.

The specialist noted that despite the many advantages, low-risk instruments have a number of disadvantages, such as low returns. Compared to risky assets, such as stocks or cryptocurrencies, the yield of risk-free instruments is usually lower.

The information in this material does not constitute investment advice.

Last year, on December 29, Shatov told Izvestia about the advantages of bank deposits. According to him, for depositors a bank deposit is an opportunity to secure their savings, preserve them and even increase them, and for credit organizations - a way to get free funds that will work and bring income.